Which of the following statements is CORRECT?
A) One of the advantages of the corporate form of organization is that it avoids double taxation.
B) It is easier to transfer one's ownership interest in a partnership than in a corporation.
C) One of the disadvantages of a sole proprietorship is that the proprietor is exposed to unlimited liability.
D) One of the advantages of a corporation from a social standpoint is that estockholder has equal voting rights, i.e., "one person, one vote."
E) Corporations of all types are subject to the corporate income tax.

Question

Quizplus · Accepted Answer

The statement that one of the disadvantages of a sole proprietorship is that the proprietor is exposed to unlimited liability is correct. The other statements are incorrect. A) The corporate form of organization is subject to double taxation. B) It is easier to transfer ownership in a corporation than in a partnership. D) Shareholders in a corporation do not necessarily have equal voting rights. E) Not all corporations are subject to the corporate income tax, as some may qualify for tax-exempt status.

Which of the Following Statements Is CORRECT